TaxTMI 
TaxTMI 
TaxTMI 
2018 (3) TMI 1518
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....upheld by Hon'ble Supreme Court in case of CIT Vs, Rajendra Prasad Moody [1978] 115 ITR 519. 3. That the order of the Ld. CIT (A) is erroneous and is not tenable on facts and in law. 4. That the grounds of appeal are without prejudiced to each other. 2. The brief facts of the case are that the assessee filed a return of income on 23.09.2011 declaring a taxable income of Rs. 4,89,05,712/-. In the return of income, the assessee claimed dividend income of Rs. 47,90,971/- as exempt u/s. 10(34) of the Act and suo motto disallowed expenditure of Rs. 1,06,41,818/- u/s. 14A read with Rule 8D. However, in the scrutiny proceedings of assessment, the assessee, after taking cognizance of CIT(A)'s order in his own case for A.Y. 2010- 11 and taking analogous method of working out the disallowance u/s. 14A, re- worked out the suo motto disallowance u/s. 14A to Rs. 23,00,575/- with the request that the disallowance offered in return was incorrect and suo motto disallowance u/s. 14A to the extent of Rs. 23,00,575/- may be considered in place of Rs. 1,06,41,818/- shown in the return of income. The Assessing Officer rejected the claim of the assessee relying the decision of Hon'ble Apex Cour....
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....view that the assessee should have revised its Return for this purpose to reduce its disallowance u/s 14A. The Assessing Officer relied upon the judgement of Hon'ble Supreme Court in the case of M/s. Goetze India Ltd. 284 ITR 323. 2) That the Order of CIT(A) for the Assessment Year 2010-11 is under challenge by the Department before the Hon'ble ITAT. The assessee took up this matter with the learned CIT(A) who vide the Order under challenge appreciated all the facts and also considered the judgement relied upon by the Assessing Officer. The learned CIT(A) came to the conclusion by relying upon the judgement of Hon'ble Supreme Court in the case of National Thermal Power Company Ltd. Vs. CIT 229 ITR 383 that a legal claim of the assessee can be entertained by the appellate authorities. The learned CIT(A) has categorically and correctly observed that the judgement of Hon'ble Supreme Court in the case of M/s. Goetze India Ltd. relied upon by the Assessing Officer restricts the power of the Assessing officer to entertain a new claim except and otherwise claimed by a revised Return. However, it does not impinge upon the powers of the appellate authorities. Further, ....
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....mpliance with the directions of the ITAT in Assessment Year 2010-11. The issues of making disallowance u/s 14A read with Rule 8D are by large well settled now by a number of judgements and following principles have emerged: 1) No exempt income, no disallowance u/s 14A. 2) The disallowance u/s 14A read with Rule 8D needs to be restricted to the extent of dividend/exempt income earned by an assessee. Therefore, the Order of the learned CIT(A) in accordance with these two principles and the same is prayed to be upheld. Copy of following judgements are enclosed herewith for your ready reference and record: 1) CIT Vs. Sam Global Securities Ltd. 360 ITR 682, Page No. 1 to 5. 2) Joint Investments Pvt. Ltd. Vs. CIT 2015-TIOL-574-HC-Del-IT also reported in 372 ITR 694, Page No. 6 to 9. 3) Copy of ITAT's Order in assessee's own case for Assessment Year 2010-11, Page No. 10 to 13. It is, therefore, prayed that Departmental Appeal may kindly be dismissed. 5. We have considered the rival submissions and have gone through the entire material available on record and we find no justification to interfere with the impugned order. A perusal of impugned order reveals that t....
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....he above mentioned question, there is also a fundamental question in the present case as to whether disallowance of expenses under section 14A to be read with Rule 8D can be more than the exempt income? Question No.1: The Apex court in the judgment in the case of Goetze (India) Ltd has clearly demarcated the powers of the A.O and the appellate authority. The relevant extract of the above judgment is given below:- 2. The question raised in this appeal relates to whether the appellant assessee could make a claim for deduction other than by filing a revised return. The assessment year in question was 1995-96. The return was filed on 30-11-1995, by the appellant for the assessment year in question. On 12-1-1998, the appellant sought to claim a deduction by way of a letter before the assessing officer. The deduction was disallowed by the assessing officer on the ground that there was no provision under the Income Tax Act to make amendment in the return of income by modifying an application at the assessment stage without revising the return. 3. This appellant's appeal before the .Commissioner (Appeals) was allowed. However, the order of the further appeal of the department bef....
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....icate that some refund or relief is due to him. This attitude would, in the long run, benefit the Department for it would inspire confidence in him that he may be sure of getting a square deal from the Department. Although, therefore, the responsibility for claiming refunds and reliefs rests with assessees on whom it is imposed by law, officers should :- (a) draw their attention to any refunds or reliefs to which they appear to be clearly entitled but which they have omitted to claim for some reason or other, (b) freely advise them when approached by them as to their rights and liabilities and as to the procedure to be adopted for claiming refunds and reliefs. I have considered the Apex Court judgment in the case of M/s Goetze India Ltd where it is held that there was no provision under the Income Tax Act to make amendment in the return of income by modifying an application at the assessment stage without revising the return. But the judgment itself has made it clear that this particular issue is limited to the power of the assessing authority and does not impinge on the power of the Income Tax Appellate Tribunal. In view of the above mentioned discussion I have considered the ....